Section 21 of CGST Act

Manner of recovery of credit distributed in excess

• See rule 97 of CGST Rules, 2017.

• Section 21 enforced w.e.f. 1-7-2017.

Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 20 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest, and the provisions of section 73 or section 74 or section 74A, as the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered.

{Section 74A Inserted by the Finance (No. 2) Act, 20 24, w.e.f. 1-11-2024}